• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 17 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 5 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 53 mins Saudi Fund Wants to Take Tesla Private?
  • 10 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 1 hour Starvation, horror in Venezuela
  • 2 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 10 hours Venezuela set to raise gasoline prices to international levels.
  • 1 day Batteries Could Be a Small Dotcom-Style Bubble
  • 4 hours Are Trump's steel tariffs working? Seems they are!
  • 1 day Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 2 days France Will Close All Coal Fired Power Stations By 2021
  • 2 days Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 24 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
The $80 Billion Megaproject Splurge In Oil

The $80 Billion Megaproject Splurge In Oil

The growing lineup of megaprojects…

Iran’s Latest Tactic To Save Market Share

Iran’s Latest Tactic To Save Market Share

Iran cut oil prices for…

Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal

OPEC

Russia’s oil producer Gazprom Neft is ‘holding its nose’ to the OPEC/non-OPEC production cut deal because it has made the company cut its production growth targets, Gazprom Neft’s first deputy CEO Vadim Yakovlev told Reuters in an interview published on Monday.

“The companies involved in this deal are paying a different price. The effect is equal for everyone, but the contribution of the companies to the deal is different,” Yakovlev said.

“This is related to the market players’ ability to increase their output - we have such a possibility and have to ‘hold our noses’. Gazprom Neft makes a big contribution to the deal. For us, this is a very sensitive issue as it is holding up the development of our fields,” said the manager who noted that the company sees the deal as a short-term one.

In June this year, Gazprom Neft CEO Alexander Dyukov said in an interview published on Gazprom Neft’s website:

“Gazprom Neft, as you know, has, in recent years, aggressively expanded production — by seven to nine percent per year — and, of course, we had planned to continue growing at that same rapid pace. Following the OPEC agreement, instead of growing at eight to nine percent, we have increased production by just 4.5 to five percent. Which is, without a doubt, a negative factor for us.”

Gazprom Neft plans to lift its oil production next year, Yakovlev told Reuters in today’s interview.

Related: Mass EV Adoption Could Lead To $10 Oil

For the first half of this year, the company reported a 23.1-percent annual increase in net income, while oil and gas production, including such from joint ventures, rose 5.3 percent year-on-year, driven by production ramp-up at the new Novoportovskoye, Prirazlomnoye, and Messoyakha fields, as well as in Iraq.

Gazprom Neft’s Middle East operations are of “strategic importance”, Yakovlev told Reuters, adding that the company plans to increase its presence there. At the Badra field in Iraq, production is expected at between 85,000 bpd and 90,000 bpd in 2018, to reach 110,000 bpd in the future. Iraq has not asked Gazprom Neft to cut production in the country, Yakovlev told Reuters. At the end of March, Gazprom Neft’s production at Badra was 80,000 bpd, with further developments planned.

In Iran, Gazprom Neft has filed plans to develop two oil fields— Changouleh and Cheshmeh Khosh.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News